Don’t even think about retiring – till you read this

One of the saddest things I come across regularly involves retirees / people who are about to retire / or people who have just retired.

For many of them, this is the first time in their lives that they’ve had to organise a budget and they have no idea how to do it, or where to start.

What’s sad about that? Well – in the past these people have never thought about money. They’ve been paid each week, and they’ve spent all of that money accordingly. Now there’s no suggestion that the money has been wasted. We each live our lives according to our own priorities and how we spend our money is our own business.

But the sad part is – there’s no money put aside for the future or even a rainy day and many of these people will only have a government pension as income once they’ve retired.

And it’s not much!

If you’re not a home-owner and are renting your accommodation, the government will give you some rental assistance. It’s not enough to cover all your rent; it’s only a small portion.

So, for a married couple who are renting and including the pharmacy and other benefits allowances the annual income is around $31,000 per year. (This is approximately $600 per week)

From that $600 per week, at least $200 of it will be needed for basic home costs – utilities, vehicle costs (registration & insurances), communications (internet & phone), basic household contents insurance, and a few prescriptions each month.

Nowadays it seems that there are only a few people who reach retirement age without some form of necessary medication. Of course, if you want private health insurance, you’ll need to add around $45 per week to that total.

Do the sums – if your rent costs $350 per week and you need $200 for basic living costs, then you’ll be left with just $50 per week for food and entertainment.

If those figures scare you enough to say “I’m not going to stop working” then I have to remind you that you’re not 21 any-more.

And, if you’ve used and abused your body without giving it much consideration over the preceding years – have you given much thought to the fact that your personal human machine will wear out eventually?

What happens then?

 

(c) Carmel McCartin – Budget Bitch

And don’t forget – (The views expressed in this blog are the personal opinions of the author. Don’t rely on them to make financial decisions, you have to make up your own mind. If you don’t like the content – then either stop reading or send me an email)

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